Diamondback Capital Redemptions Top $1 Billion
Diamondback Capital Management received withdrawal requests totaling $1 billion — 17% of the hedge fund manager's $5.8 billion under management — for March 31, the next redemption window, confirmed a source with knowledge of the situation who insisted on anonymity.
Diamondback was among the hedge funds raided in November by the FBI in connection with a widespread Department of Justice insider-trading investigation. Neither Diamondback nor its employees have been charged with wrongdoing.
Monica Everett, a Diamondback Capital spokeswoman, declined to comment.
Several of Diamondback's large investors “have expressed their current intention to remain invested at or close to their current levels,” according to a Feb. 1 client letter from Richard Schimel and Lawrence Sapanski, co-chief investment officers, that was obtained by P&I Daily. Source